Stocks close flat amid institutional profit-taking

KARACHI: Stocks closed flat on Thursday amid institutional profit-taking in blue-chip stocks after an intraday increase above 79k point in the volatile session.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 share index closed flat with an increase of 15.33 points or 0.02 per cent to 78,863.34 points against 78,848.01 points recorded in the last session. The highest index of the day remained at 79,154.30 points while the lowest level was recorded at 78,578.02 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks closed flat on institutional profit-taking in blue chip scrips.”He said that the finance minister’s affirmation on external financing assurances, speculations over the SBP policy rate decision next week and upbeat data for the trade deficit (falling by 21 per cent in August 24) played a catalyst role in the positive close.

However, investor concerns for weak data for fertiliser and oil sales in August and uncertainty over IMF terms to secure the $7 billion extended fund facility (EFF) invited late session pressure.

The KSE-30 index increased by 13.73 points or 0.05 per cent to 25,026.05 points against 25,012.32 points.

Traded shares dropped by 199 million shares to 770.518 million shares from 969.768 million shares. The trading value decreased to Rs14.287 billion from Rs17.51 billion. Market capital narrowed to Rs10.467 trillion against Rs10.485 trillion. Of the 444 companies active in the session, 148 closed in green, 252 in red and 44 remained unchanged.

Maaz Mulla, an analyst at Topline Securities, said the stock market edged up by 15 points, or 0.02 per cent, closing at 78,863. The index saw considerable volatility throughout the session, reaching a high of 79,154 and a low of 78,587.

The rise was largely fuelled by stocks, including UBL, KOHC, MCB, HMB, and FFC, which together added 254 points to the index.

The highest increase was recorded in Hallmark Company Limited, which rose by Rs87.19 to Rs982.12 per share, followed by Sazgar Engineering Works Limited, which increased by Rs51.72 to Rs1,010.23 per share. A significant decline was noted in Sapphire Fibres Limited, which fell by Rs77.38 to Rs1,450.18 per share; Mari Petroleum Company Limited followed it, which closed lower by Rs50.70 to Rs3,590.72 per share.

Brokerage Arif Habib Ltd stated that intra-day gains pushed the KSE-100 beyond the 79k mark, but the index closed below this level as the session ended.

KOHC saw a notable jump of 9.45 per cent after announcing its FY24 EPS of Rs45.41, a 53 per cent year-on-year increase, and a 4QFY24 EPS of Rs12.16, up 5x YoY. The company announced a buyback of up to 12 million ordinary shares (6.0 per cent of total outstanding shares and 20 per cent of total free float) set to commence from October 23, 2024, to April 12, 2025.

Domestic cement sales in August dropped by 27.5 per cent YoY to 2.75 million tonnes, indicating a challenging market environment.

The State Bank of Pakistan is scheduled to announce its monetary policy on September 12, 2024, with expectations of a 150bps rate cut, potentially bringing the policy rate down to 18 per cent, a level last seen in February 2023.

The KSE-100 is currently up 0.5 per cent week-on-week as it heads into the final session of the week, and a close above 79k could pave the way for a move towards the 80k level.

WorldCall Telecom remained the volume leader with 87.102 million shares which closed lower by 3 paisas to Rs1.34 per share. Pace (Pak) Ltd followed it with 66.581 million shares, which closed higher by Re1 to Rs5.66 per share.

Other significant turnover stocks included Kohinoor Spinning, Dewan Cement, Symmetry Group Ltd, Media Times Limited, Amtex Limited, Sucure Logistics Gro, F Nat Equities and Cnergyico PK.

In the futures market, 318 companies recorded trading, of which 90 increased, 225 decreased and 3 remained unchanged.